Unemployment affects 95% of former homeless people
It is thought they show there are now fewer than 550 people sleeping rough in England, compared with nearly 2,000 in 1998.
But campaign group Crisis is warning there is still a big problem, and that many of those who were sleeping rough are caught in a pattern of moving from hostels to the streets and back again.
Experts believe around 400,000 single people are currently homeless in the UK, and the government's own figures show the number of families in bed-and-breakfast accommodation has never been higher.
'Not fiddled'
Prime Minister Tony Blair set the target to reduce the number of people sleeping rough by two thirds by 2002.
Unit head Louise Casey has denied the claims, saying critics were trying to undermine the excellent work done by charities and local authorities to reduce the number of rough sleepers.
"There is absolutely nothing in these allegations and I am deeply disappointed by them," she said.
"We want to find the people who are out there. We care about those people and we want to help them come in from the cold."
'Inquiry needed'
But Philip Burke, from the Simon Community, which works with rough sleepers in London, is concerned the figures do not represent the true scale of the problems.
He supported claims that members of the Rough Sleepers Unit had tried to reduce numbers of rough sleepers on the night of the head count.
"The Simon Community was asked on the night of the official head count to extend its night in the shelter for a number of residents purely so they would not appear on the official count," he said.
"We are very, very concerned and very angry."
Work training
He told BBC Radio 4's Today programme the Simon Community wanted an inquiry into the validity of official figures.
Aspire, an organisation offering work training and opportunities to homeless people, says that 95% of homeless people are unable to get work, even when they have found a home.
Despite progress in reducing the number of people sleeping on the streets, Crisis says there is still a lot of work to be done.
The charity is launching its Hidden Homeless campaign on Monday, as well as opening its network of winter shelters.